Is the market in a healthy recovery phase?

April 27, 2013

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This week we are a bit heavier into investing in precious metals and precious metal stocks. Is the market in a healthy recovery phase? Have we perhaps seen the lowest of the lows? We try to answer these questions with the help of industry veterans.
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    Apr 27, 2013 27:35 AM

    Hi Big Al,
    We are at a Generational Opportunity to buy precious metals, and equities and funds, as Big John Embry so rightly explained.

      Apr 27, 2013 27:43 AM

      Thanks Keep Stacking,

      This week was very difficult as my recording program kept crashing. I wish I understood computers!

      Big Al

    Apr 27, 2013 27:41 AM

    As per last week a superb weekend show Al and Jeff. Thankyou. How can anyone not take John Embry’s measured tones seriously?

    Concluding a piece on April 26th Alastair Macleod of writes:

    ‘History might judge April 2013 as the month when through precipitate action in bullion markets western central banks and the banking community finally began to lose control over all financial markets’.

    Seems likes this outgoing month could be a historic watershed, with the madness getting close to its zenith.

    All the best, Andrew

      Apr 27, 2013 27:45 AM

      You could very well be absolutely correct Reverend. I am in your camp by the way. May not be that quick but I do believe that you general idea, courtesy o fAlastair Macleod is correct.

      Big Al

    Apr 27, 2013 27:38 AM

    Not yet Andrew.

    Three little words of advice……Mayday, Mayday, Mayday.

      Apr 27, 2013 27:09 AM

      Thanks Birdman – Mayday heeded! A

      Apr 27, 2013 27:48 AM

      Morning Bird Man,

      Nothing is immediate as you are aware.

      I believe what I wrote above. I think the turn is here but it may not happen really quickly but I think that from a general trend the upward movement has definitely started.

      Call me crazy but the odds of me being correct are as good as the odds of those who say, “no gold will till drop a few hundred points”. I really don’t think so.

      Big Al

    Apr 27, 2013 27:42 AM

    ENJOYED BUD……I think he is correct on the paper market…..ootb….

      Apr 27, 2013 27:46 AM

      I BET BUD HAS A VAULT FILLED WITH GOLD IN HIS BACK YARD….he just does not want anyone to know……..

    Apr 27, 2013 27:30 AM

    Just heard Kudlow say gold had a dead cat bounce and is going down even more. That only means one thing – BUY GOLD BUY GOLD BUY GOLD.
    Kudlows about to see what GOLD FEVER looks like!

      Apr 27, 2013 27:38 AM

      Kudlow is a commie………..and part of the govt…….

      Apr 27, 2013 27:50 AM

      Morning In the Box,

      I don’t know about that, but I do know that he is brilliant.

      Big Al

        Apr 28, 2013 28:03 PM

        By the way I am referring to Bud and not to Ludlow Marc!

        Big Al

      Apr 27, 2013 27:51 AM

      I am with you The Greater!

      Big Al

        Apr 27, 2013 27:22 AM

        Big Al,
        Kudlow? YOU are kidding, right? Please AL – say you are kidding or “tongue in cheek”?

          Apr 27, 2013 27:00 PM


          Please, please and more please, put the comment into the proper context!

          Big Al

          Apr 28, 2013 28:04 PM

          Common man see my comment above.

          Big Al

    Apr 27, 2013 27:37 AM

    GUN CONTROL….that is like trying to keep a teenager from speeding… is not going to happen…………….ootb

      Apr 27, 2013 27:51 AM

      That is a brilliant comment In the Box!

      Big Al

        Apr 27, 2013 27:18 AM

        thanks Al,,,,even a squirrel finds a nut, once in awhile………

          Apr 27, 2013 27:03 PM

          HaHaHa….but what does that mean, OOTB? (PS: big fan of squirrels)

            Apr 27, 2013 27:19 PM

            well,,,I intended that it mean……Every once in a while,,,,one does come up with a good one……but,,,,Since you love squirrels,,,,you will not find any more of a squirrelleer place to be ,,than here……………or one could say,
            the nuts are running the asylum…..and we are just squirreling around…..,anyways glad you enjoyed…………..ootb……………….

            Apr 27, 2013 27:12 PM

            So long as we don’t have to live in little squirrel bunkers it’s all good with me!

            Apr 27, 2013 27:28 PM

            bird man……if we do,,,I do not want them grabbing my nuts…………

            Apr 27, 2013 27:05 PM

            We have about a million of them up here, Bird Man. I actually think they are kind of cool and so does Callaway aka T h e Studio Pooch!

            Big Al

    Apr 27, 2013 27:32 AM


    How many Disney movies can you think of that open up with an exploration into the nature of money?
    I can only think of one. Not quite as in depth as “Atlas Shrugged” but a curious beginning to a Disney movie. It is as if there was no better way to start the picture.
    Old Yeller was not Travis’ first dog.
    Travis’ favored first dog Bell was bit by a rattler.
    Just after the Civil War Bell was bitten by the head of a rattler “Papa” had separated from its writhing body with a scythe. The favored Bell did not make it.
    Was the name of the felled favored first dog an accident?
    The young America’s hard fought for Liberty was symbolized by a cracked Bell.
    The Civil War had killed the country’s innocence causing it to mourn as Travis mourned his favored dog. Then Old Yeller burst onto to the scene calling for the love of a dog and/or liberty once again.
    It is difficult not to compare Travis’ dogs with America’s healing and struggle for liberty.
    Travis was given the chance to name the newly arrived stray.
    He could have just as easily called him Ishmael.
    On a basic level Old Yeller is a kid’s story of adventure on the frontier.
    But the author of both the book and the screenplay delved into deeper levels of concern even though very simply put.
    Below is dialogue from the movie’s opening scene, to wit:
    Arliss: “What’s pop gonna sell our steers for?”
    Travis: “For money of course!”
    Arliss: “What’s money?”
    Travis: “It’s what you buy things with.”
    Arliss: “What do you mean buy things?”
    Travis: “Well you got money ya give it ta people for stuff. They say you can get anything for money.”
    Arliss: “Anything!!!!!! What’s it look like?”
    Travis: “I never seen but one piece…a dollar bill Papa had. Its paper”
    Arliss: “What did Papa get for this dollar?”
    Travis: “Nothing it was no good.”
    Arliss: “But you just said you could get anything with money!”
    Travis: “Well you can..Papa’s was Confederate.”
    Arliss: “What’s Confederate money?”
    Travis: “Confederate money…well…’s……..
    Arliss: “ Well!?????”
    Travis: “Don’t you ever run out of questions!”
    Maybe we should be more like Arliss and ask more questions about the nature of money.

      Apr 27, 2013 27:54 AM

      Great and astute comment, Dennis M!

      Thank you,

      Big Al

      Apr 27, 2013 27:26 AM

      That is priceless Dennis. Great comment. I woud love to see the movie clip sometime.

        Apr 27, 2013 27:55 AM

        I linked to it above…..the youtube link right below Travis’ last line…..I would advise to fast forward through the opening credits and “Old Yeller” song

        Apr 27, 2013 27:06 AM

        FYI Birdman follow the below link the scene is located at the
        2:25 – 3:10 mark:

          Apr 27, 2013 27:07 PM

          Many thanks, Dennis. Is that not the weirdest Disney dialogue ever? Reminds me in a a way of the Wizard of Oz and all the themes they planted there for the adults watching the movie.

            Apr 27, 2013 27:35 PM

            I think at the time…..of the movie ……WALT DISNEY ,was still holding confederate currency……plus,,,,that was his inspiration for DISNEY DOLLARS…

            Apr 27, 2013 27:51 PM

            In the heart of The Bretton Woods system a ‘true’ economic message was not abhorrent.
            We were ‘not all Keynesians’ yet. It is safe to say Disney is under new management.

            Apr 27, 2013 27:08 PM

            Here is an exercise…..
            Differentiate between what caused the collapse of the Confederate Dollar and The United States fiscal and monetary policies from September 2008 to date. (Show your work in the blue book provided)

            Apr 27, 2013 27:59 PM

            BLUE BOOK…..FORM………………………
            What caused the collapse of the Confederate dollar,and the US…fiscal and monetary poliess from Sept. 2008 to date…
            In order that we might conside the issue,,we must first separate the two situations…
            In the years from 1861 and the firing of the first shots from the Charleton Harbor ,on Ft. SUMPTER, the confederate currency did not exist, but , was hasily put into circulation,when the US FEDERAL GOVT. ,seized all greenback from circulation, thereby, causing the necessity for the NEW GOVT. OF THE CONFEDERACY to inact and issue,a currency for trade in the new found STATES OF THE CONFEDERACY.
            At that time ,gold did back the currency………….AT THE END of the war,the gold had been mis placed, and the currency no longer had value,,,,and as a dissolved state or govt. the backing was no longer there, along with the pride of ownership……
            YOU know there is a lot of PRIDE in the OLE SOUTH…..So, a lack of gold ,therefore , a lack of want for a currency of no value…………..
            Now, that brings us up to the current situation from 2008,,again, no gold backing, and printing of currency ,but, instead of JOHNNY REB…holding the currency, we have JOHNNY SIX PACK……both of which, have a dull memory or the past,…..
            So, the situation for such occurances to be simular and to have simular fate, would not be uncommon for a common man to understand,,,but, these are not common times., and require the attention of those who would desire to participate in the upcoming events which we find ourselves today………….a currency that is back by nothing, the same as the fate of the confederate currency, which had nothing left, ….NO, jobs, no money, no food, no economy, it was a NO BRAINER…., that the currency was NO good…
            much simular as today……………………….ootb…just for fun…..

            Apr 27, 2013 27:00 PM

            btw……this is worth at least a D-

            Apr 27, 2013 27:07 PM

            professor please forgive me,for not proof reading prior to submittal but, this was a pop quiz…………..

            Apr 27, 2013 27:09 PM

            Another great movie/ Bird Man!

            Anyone seen the recent remake?

            Big Al

            Apr 27, 2013 27:16 PM

            The Confederacy had an excuse to abuse its currency it was in a battle for its mere existence. Today on the other hand we just do not want to confess we are broke.
            When the Confederacy ended the people holding the worthless paper held only a down the road novelty collectible. Southerners got on with getting on. When this fiscal fiasco monetary mayhem collective cluster collides with the rapidly rotating metal blades there will be tens of millions of people expecting entitlements that will not be delivered. The disrupt will be far greater !

            Apr 27, 2013 27:00 PM

            Jerry………….Off Track Betting///////// Blue Book Grade.>>>>>>>> A+

      Apr 27, 2013 27:22 AM

      maybe we could get Disney to run the country…….after all, most of what is being done is a complete fairy land. or fairy tell……………

        Apr 27, 2013 27:24 AM

        or is that a nightmare on elm street……or the Headless Horseman……which would represent our govt….

          Apr 27, 2013 27:42 AM


          Apr 27, 2013 27:32 PM

          I will get to those tales after conjuring the economic implications found in Sounder.

    Apr 27, 2013 27:40 AM

    Hi Al, I notice you mention “huge” line ups at the Pender st. gold store in Vancouver.
    The name of the place on Pender st. is “Gold Vancouver” they buy gold, they compare their prices to pawn shops and cash for gold etc. That would be consitant with what I have seen in Calgary, people selling, not many but some.

    Benny Lee on Hastings is a couple blocks away, A very reputable place to do business for anyone happens to visit Vancouver B.C. At least he always was, I dont know why he would change, been there for more decades than I can remember.

      Apr 27, 2013 27:55 AM

      Morning benb,

      I am going to go to his store and introduce myself next time I am in Vancouver.

      Thanks for the tip,

      Big Al

        Apr 27, 2013 27:16 AM

        Big Al. There is also J and M coins, 127 east broadway,probably Vancouver’s largest dealer.

          Apr 27, 2013 27:40 PM

          Thanks Greg,

          I will also check that one out. Obviously would have would have to large purchases with my daughter.

          Big Al

        Apr 27, 2013 27:33 AM

        Good call. I would shop Benny anyday, great service and professional…… J&M behaved like a bunch of rats in all my experience. I would not buy dirt from them if they were the very LAST dirt dealer in the whole damn city.

          Apr 27, 2013 27:04 AM

          Too funny Birdman,they do lack people skills

            Apr 27, 2013 27:08 PM

            Funny stuff. I see you have been there too!!!

            Apr 27, 2013 27:54 PM

            I am going to check the lines at Smith & Wollensky.

      Apr 27, 2013 27:51 AM

      Another thing about bennie lee, they used to know how to grade coins, for any collecters out there. So many today dont know how to grade, seems the criteria has deteriorated somewhat, but bennie lee was around when grades were being developed I think. At the beginning of the “charlton” published yearly, coin guide, that was the book for canadian coins, had instructions how to grade.Stories of them etc. Dont know if that book exists anymore. I am certain Bennie has passed, but I bet his upright ways were passed on.

        Apr 27, 2013 27:40 AM

        benb.. you may already know this…but,,,,…the best and most secure why, is let one of the professional grading services grade the coin….that way it is numbered, recorded,and can be easily traded or sold,, ….,and if it is a problem with the coin, it will be mentioned they will put it in a clear sealed container that will preserve the condition of the coin…….If you are going to buy graded coins ,the price between grades can be large… grade difference could mean thousands…….or more….subject to the type coin….and that is why you would want an professional grading service to do the grading…..and not someone at the local coin shop,because they may or maynot know what they are doing…………but, there are a lot of great dealers ,,,but, no guarantees if they make a mistake…..where as the professional grading services have insurance against misgrading………………just my two cent worth….OOTB.

          Apr 27, 2013 27:44 AM

          oh,btw….be collecting coins for 55 years….so, I have made some big mistakes,,and got some great lessions in return…………

            Apr 27, 2013 27:56 PM

            Hi Jerry, Yes, for someone that doesnt know how to grade getting a pro service opinion on what your buying would be a good idea. I was just saying that I remember Benny lee to be honust.

          Apr 27, 2013 27:43 PM

          Many thanks, In the Box.

          Big beginner Al

    Apr 27, 2013 27:04 AM

    Call me a commie if you like but I say the bottom is NOT in (gold).
    I expect a “double bottom” and if it happens day after tomorrow it is not valid.

    quote: “As with many other bases, a double-bottom base should last at least seven weeks”.

      Apr 27, 2013 27:36 AM

      I’m with you Irwin. Bide your time. All the talk in the world won’t move a market that has not yet completed its cycle. This one has to play out from current levels before we will see a genuine recovery and “turn”. Why is everyone in such a damn rush anyway?

      Apr 27, 2013 27:59 AM

      Hi irwin & bird.
      I am not sure of a bottom either, I still think we should be coming back down, there are the doldrums and the concern of europian nations selling gold to pay debt, gold supplies have not run out, I see no line ups. Supply is meeting demand it seems, if supply continues to meet demand for awhile people will realise there is no rush to buy, then maybe some nation sells? could go way down yet.

      Apr 27, 2013 27:22 PM

      irwin………such action could result in a sore bottom……………ootb

    […] Listen to the show HERE! […]

    Apr 27, 2013 27:11 AM

    The gold cheerleaders are highlighting the demand for physical around the world which as a momentum trader has me asking:
    1) are the buyers old longs adding to positions?
    2) are the buyers new buyers?….that’s the ideal as we need the momentum to continue to hold up physical demand putting pressure on bogus paper pricing

    Two issues has me scratching my head??

    This would be a FIRST that the street level Sheeple are actually buying a bottom!!

    I’d be a lot more bullish towards the pm’s shares if the smackdown took place in ALL equities..2008…I’m not in the camp which calls for the pm’s shares to swim against a general equity liquidation event from another wave of DEflation

    $1520 and $26 are going to be very, very key levels setting up for Battle Royal

    Good Luck All !!!

      Apr 27, 2013 27:37 AM

      When you see the cascading long red bars as ‘paper metal’ is dumped on the market contemporaneous with relatively firm physical price levels the battle will occur in the physical market at higher prices as paper markets deal with whatever level.
      If we chart the price of gold at your average retailer in Tokyo the chart formations would look quite different. Try to buy silver at $24 an ounce at your local pawn shop…..good luck!

      Apr 27, 2013 27:16 PM

      You might just get your wish JJ. My numbers tell me we get our overdue stock market correction this coming week. It should be very interesting (because almost nobody expects it as usual). I don’t anticipate anything too big though. More a garden variety pullback that must take place if equities are to continue higher.

        Apr 27, 2013 27:53 PM

        Will be really interested to see if that happens, Bird Man.

        Big Al

      Apr 27, 2013 27:11 PM

      I agree jj, is it old buyers adding more or new buyers,?odd new buyers would buy a bottom. I havnt seen line ups yet, except a small one for selling, seems to me supply is meeting demand. We hear of massive buying and mints working overtime, but demand is being supplied so far I think.

        Apr 27, 2013 27:06 PM

        Maybe Ben b but I remember Grant ‘s comments about demand in the Far East on as recent weekend show.

        Big Al

      Apr 28, 2013 28:06 AM

      A peak prosperity podcast with Robert Mish, interviewed a large dealer, its @ the max keiser site.
      He was asked are they new buyers or established buyers.
      They are people that have been buying all along.

      Apr 28, 2013 28:54 PM

      Our dealers are reporting proportions of buyers as first timers up to one third, so this is not just existing investors. Still a question mark in my mind as to whether this is just demand being brought forward, just need to wait and see.

    Apr 27, 2013 27:31 AM

    i am saving my money for the next bottom. than i will be all in again! by the way, what happened to cfs (cash for silver)? haven’t seen his posts for a while. i always look forward to his contributions! dwj

      Apr 27, 2013 27:56 PM

      Hi DAVID,

      I believe that He is currently traveling per his recent comment.

      Yep, we all miss him.

      Big Al

    Apr 27, 2013 27:09 AM

    For entertainment puposes only.

    First time I’ve used this imaging service .. not sure if this will work.
    -double bottom ?

      Apr 27, 2013 27:16 PM

      Again with the “double bottoms” Irwin. Now I am not mentioning women in my comment or anything like that but don’t the best things in life all come in pairs!

        Apr 27, 2013 27:07 PM


        Apr 27, 2013 27:57 PM

        Definitely theydogentlemen!

        Big Al

    Apr 27, 2013 27:40 PM

    Syymmetry is always preferable. Reminds me of the cosmetic surgeon’s offer to the blonde: ‘I’ll do you two for the price of one”!

    Apr 27, 2013 27:01 PM

    Suspect some slippage in the coming days/weeks.

    Chop. Backing-and-filling.

    Time is necessary for the healing process.

    Apr 27, 2013 27:00 PM

    Days or weeks probably, but I don’t think much more than that!

    Big Al

    Apr 27, 2013 27:09 PM

    Small point: Yes, there are gun crimes in Canada, but a good portion of them are with illegal guns smuggled in from the US. As we all know criminals tend to use illegal guns where-ever you are.
    Something to mull over: with the advent of 3d-printing, there is now capability to “print” your own gun! (Oh darn, paper jam!!)

    Apr 27, 2013 27:17 PM

    George Jones
    Born: September 12, 1931, Saratoga
    Died: April 26, 2013


    Tributes to George on the Opry tonight.
    opry (dot) com/wsm/

    Apr 27, 2013 27:44 PM

    FYI….Now in my fig is a piece of Smith & Wollensky chocolate cake.
    Family tradition is in the AM with coffee and/or milk we will pretend the delicacy is a misshapen doughnut.

    Apr 27, 2013 27:59 PM

    The fat lady will tell us when the lights will turn on……

    In the end the fraud will collapse due to psychology.
    It will be like a light switch being flicked on from off.
    Since the collapse of Bretton Woods and devolution into pure irredeemable paper money the only thing that separated the continuation of the fraud and the collapse was psychology. As long as a populace is willingly duped and accepts nothing as something then the fraud will continue. This is why over the last few decades so much effort has been engaged by the first use of the debt ‘money’ contrived into existence to shape what we think and even if we think. For example:
    1) Wall Street stressed perpetual growth into layer upon layer of more complex leverage;
    2) Madison Avenue stressed the natural state of debt and instant gratification…..”Do not leave home without it!”…..”put a little weekend in your week!”
    3) Healthcare became place where common emotions were medicated away by a dispensary of mood altering drugs
    4) Pharmaceutical companies designed hammer drugs and every common emotion became a syndrome and therefore a market to nail
    5) Media provided an immersion into the unnatural state that was to be accepted
    6) The end results being those that see the contrivance are the eccentric odd man out.

    Whatever the form the manipulation takes and even considering the varied forms combined effects the sober clear thinking minds will have their day. Reality cannot be held in suspended animation forever. At some point the animation is seen for what it is and the participants will demand nature itself. The psychological light switch will be turned on. Standing in the light with our eyes wide open we will see that the game is over.

      Apr 27, 2013 27:37 PM

      Dennis M., really enjoyed what you put up more than most nearly most of what I heard on the show. Of couse enjoyed John Embry & seagent 6 that was pretty good. Just hearing from that partriot, former Secret Service Agent was truely great. Then seeing on the down under the screen a picture of Obama, just drove the point that we need not disarm to make more sheep for the wolves to feed on, strategy. It was tried in 1776, and it ended badly for the British. It will again for those London Banksters pushing the buttons now. We need to get involved or we will have what Clay of Oregon said in past comment, that Obama will be the last President of the United States. Ole Obama cheated his way like a snake through the cracks to get to the top of the heap—what a piece he is. What has he done–NOTHING. Did he serve in arm`s under the flag of this country. Was he even born in this country, what achievements had he had other than being elected to an office, NOTHING again. The man from nowhere goes through my mind. He really is what CFS says about Obama, the big “0“. That`s what makes him so much like his benefactors, they love to get something for nothing again, & again, one ponzi scheme after another created bubble out of thin air, ride. the !% giving behind closed doors the scoop of the insiders dream of what good for them is good for him. The 4th estate not in attendance. is the 2nd coming just around the corner or what. ……………..Just what we are seeing, the rest of the world is seeing in horror. Can our allies really trust this country as far as treaties go, must less former enemies can. WWIII, as far as Trader Rog has said, could happen. If the people can`t trust their own government, can our enemies or anybody for that matter trust, what they say. Time will tell all…….

    Apr 27, 2013 27:46 PM

    By the way, Al, this was an excellent weekend show. Nice work. Just listening to it a second time. You really have a great lineup of guests and the conversations are fascinating. I hardly know what to sink my teeth into first there was just that much material.

    Apr 28, 2013 28:24 AM

    PRESTIDIGITATION…..a fancy way of saying we have been duped!

    Birdman and Al brought up “Oz The Great and Powerful” in the response to my above comments about “Old Yeller”. Those of you familiar with my postings realize I have probed into the L. Frank Baum “Wizard of Oz” book and the 1939 classic film version. I am certainly not unique in this area inquiry but I do find it fascinating that things are in plain popular culture views which are for the most part ignored. In a March Weekend Show post I made note of what was written on the side of The Professor’s Wagon Dorothy runs into as she attempts to run away with the recently liberated Toto.
    The post was on March 23….. I noted the text of the advertisement illustrated in the classic movie as follows:
    Professor Marvel
    Acclaimed by The Crowned Heads of Europe…
    Let him read your palm- In his crystal ball
    Juggling and Sleight of Hand

    I have been looking into mainly the sleight of hand aspects of how an audience can be deceived en masse. As recently as last week I referenced little Bobby Murphy disrupting the birthday party magic show. There exists a direct relationship with “sleight of hand” and the fractional reserve central banking system. People have been induced to believe in fraud.
    On the Wikipedia page for “sleight of hand” aka Prestidigitation there is a reference to a Penn and Teller skit to which I provide a video link:

    The skit breaks down the deception into categories.
    1. Palm – To hold an object in an apparently empty hand.
    2. Switch – To secretly exchange one object for another.
    3. Ditch – To secretly dispose of an unneeded object.
    4. Steal – To secretly obtain a needed object.
    5. Load – To secretly move an object to where it is needed.
    6. Simulation – To give the impression that something has happened that has not.
    7. Misdirection – To lead attention away from a secret move.

    I suggest that 1 through 7 above is a breakdown of the fractional reserve central banking system’s deception.
    Every step above has been necessarily implemented over time by the bankers because if the populace consciously realized the nature of the fractional reserve central banking system they would not have participated. To explain how we arrived in the fiscal monetary predicament in which we find ourselves is similar to understanding an audience applauding a magician in a sideshow act.

    It is telling that the name of the mime is Teller. In the world of deception and illusion things are named exactly for what they are not.

    Back to the Movie the prequel is a worthy time investment. My take away from the journey is it is better to be good than to be great, but to be truly good you do not need all the machinations.

    A critical thinker might ask why go through all the trouble?
    Why didn’t Teller just light the darn cigarette for real?
    But there would not be any deceit in that!
    Some people would rather be great than good.

    Another way to put it simply is a point “Oz The Great and Powerful” makes on multiple levels and in not so subtle ways which is……evil exists.

      Apr 28, 2013 28:13 AM

      The sleight of hand, his many talents, – Cached when you sup with the devil use long spoons. de Rothschild Family – `Puppet Masters` World`s Only Trillionaires

        Apr 28, 2013 28:02 AM

        I enjoyed that one Dennis

        Apr 28, 2013 28:16 AM

        L. Frank Baum never admitted his Wizard who lived in the Emerald City was a symbolism of a banker.
        Although a studied subsequent clear connection can be drawn to the allegory.
        G. Edward Griffin was not so shy about connecting the hoax that is banking to “Mandrake the Magician”. Below is a link to the heart of Griffins book ”The Creature from Jekyll Island” which followed the subterfuge of “The Creatures” creation and early history. Chapter 10 “The Mandrake Mechanism” is hardly a bashful connection between The Federal Reserve and the art of deception. It is inescapable to see the deceit which creates our medium of exchange without seeing the dark side that this medium therefore connects us. We arrived here after witnessing all the deceptions of a trained illusionist. All the tools of secrecy, distractions, and manipulations both physical and psychological were engaged. They did not need to be concerned about sparing costs to implement the immersion into the illusion because the “money” was theirs to invoke. But somehow psychologically the prohibitive vast majority of us ignored the connection. We tend to compartmentalize and procrastinate as if we were all Scarlet O’Hara. It is like a shopper at Lululemon failing to consciously realize she is being sold more than clothes. We are a country doomed by a suspension of disbelief.

          Apr 29, 2013 29:51 PM

          FYI Michael Pento added to the magician theme today at the KWN blog.
          Referencing the dire straits as the Feds Magic Show.

    Apr 28, 2013 28:25 AM

    Instead of putting it all on Bernake, let’s go back to 10 years when monetary policy was launched orbit under Greenspan. To keep it simple, let’s say you have $100K in savings and then work in round numbers to calculate the damage done.

    First come opportunity costs, where the Fed deprived people of the beneficial use of their own life savings. Back in 2003 a 5% CD was pretty common. That translates into $5K/year of passive income you never saw—or $50,000 over 10 years that you never got because the Fed decided their banks keep it for their own good. That’s $50K.

    Next comes the Fed’s attack on your principle—the inflation thing. We can argue numbers till the cows come home, but here’s a couple of good benchmarks: Nationwide utility rates have increased on average better than 4% over the last 10 years. Also, the cost of running the Federal government went from around $2.2T to $3.6T.

    Do the math and you get an average cost increase (inflation rate) north of 6% over the last 10years. Average 4% & 6$ and you get 5%. Times 10 years and you get $50K. In short, the Fed cut your net worth in constant dollars by 50%. Of course, will argue it’s worse than that, citing the fact that a gallon of gas more than doubled during that same time, and college tuition also went to the moon. But, I’m offering round numbers for the sake of a benchmark. Actual damage to individuals will vary, where those who owned gold and silver throughout that period suffered less.

    Back to that $100k in life savings you had sitting in an insured bank account.
    1. You were deprived at least $50,000 of beneficial use of your own money.
    2. The Fed then debauched your life savings by another $50,000.

    So, there sits your $100,000 with half the purchasing power it had 10 years ago and the banks getting free use of it by depriving you any interest income.

    Apr 28, 2013 28:49 PM

    Oh darn; I had mixed emotions when I traded my 1969 Mercury Grand Marquis for Myrtle’s engagement ring, but this takes the cake. Now Uncle Clive and I are on the same page.
    quote: “Even in the best case scenario the price (of gold) is likely to back off now towards the lows”. ~end quote

    This means that everything I’ve been thinking about gold since Friday’s close is wrong. Now I say, after a wee dippity-do on Monday get ready for turn-around-Tuesday and blast off!

    But no matter … I’m still doing nothing.

      Apr 29, 2013 29:34 AM

      I with you, a pullback/retest is healthy and most likely, but I’m seeing some follow-through this Monday morning.

      BTW, I’m guessing you got a very good bargain by giving up the 1969 GP. Don’t know about you, but ever since getting married I’ve never had to ask for a second opinion about anything–and that’s priceless!

      Apr 29, 2013 29:15 AM

      Thanks for the link, Irwin. He makes a pretty good case for much deeper drops in price….even more bearish than mine where I see a base forming somewhere at 1200 or a little below. But hey…who the hell knows anymore except that it looks like we have an excellent short setup moving into place for Tuesday.

    Apr 29, 2013 29:18 AM

    jj haven’t heard from you in a while. Last time I did I thought you were very bu
    Polish on gold. Did you change your tune?

    Apr 30, 2013 30:21 AM

    When gold sold off so hard based upon the FOMC and the bullion banks shorting with both hands, that gang made money on positions that were underwater (they regained losses held) and then they shorted more, earning additional cash. This was done to avoid a Precious Metals runaway market. Our technical forecast remains the same as repeated by Big AL shown above. I have no way of telling what the markets can do under extreme severe circumstances with politics, credit, consumers attitudes, etc. in the 4th quarter when we expect a hard smash. The administration is facing unprecedented headwinds on several nasty problems the public is for now ignoring. This is very serious stuff in our view, but keep in mind those sellers could do a re-run. -Traderrog

    May 03, 2013 03:49 PM

    Thanks mr kramer for your vision regarding the precious metals and the great results of canamex resources. Keep up the good work.